Member Article

Southern Cross agrees rent deal

Troubled care home operator Southern Cross has reportedly agreed a deal with its landlords to defer 30% of its rent for four months while it tries to find a solution to its financial difficulties.

It also reiterated its belief that a longer-term solution to its troubles would be forthcoming.

The company recently warned it was in “critical financial condition” as it reported a half-year loss of £311m.

The firm, which operates 750 homes, said it would issue an update in July.

Chairman Christopher Fisher, said:“We believe that all of the key stakeholders in Southern Cross want this restructuring to succeed.

“We are in dialogue with the Department of Health, our lenders and our landlords and they continue to support the process.

“The objective will be to emerge with a stable and sustainable business model for the continuing care of our residents.”

The rent deferral runs from 1 June to 30 September.

Darlington-based Southern Cross cares for 31,000 residents across England, Wales and Northern Ireland.

This was posted in Bdaily's Members' News section by Ruth Mitchell .